Author: FX
The USD Index has tanked to 105.30 lows today from over 107.10 as Chair Powell more or less confirmed a 50bp hike at the next FED meeting, was sanguine about the terminal rate being over 5% and reiterated (again) that the fight to bring down inflation was far from over. He was as Hawkish as had been expected. Stocks & Treasuries ripped higher with optimism about China’s reopening prospects even after mixed US data yesterday. EUR – retakes 1.0450 from under 1.0300 lows yesterday.. JPY – collapsed to under 136.00 today from 139.85 highs yesterday…
Welcome to a brand new trading month! Let’s kick things off with a quick look at these bearish plays on Brent crude oil and EUR/JPY. Here are the levels I’m watching. EUR/JPY 4-hour Forex Chart Breakdown alert! EUR/JPY looks ready to bust through the bottom of its falling wedge pattern on the 4-hour time frame. If this pushes through, the pair could tumble by the same height as the chart formation or roughly 500 pips. What are technical indicators saying? The 100 SMA just crossed below the 200 SMA to confirm that bearish vibes are present, possibly taking the pair…
USDIndex slightly below 1-week amid reports of a softer stance on Covid emerging in China’s official rhetoric, which is keeping hopes alive that there won’t be a move back to tighter restrictions. All eyes are on an expected hawkish stance from Chair Powell’s speech today. Stocks – The Nikkei closed with a -0.2% loss, the ASX managed a 0.4% gain and Hang Seng and CSI300 are currently up 1.1% and 0.1% respectively. GER40 and UK100 futures are up 0.6% and 0.4% respectively. US futures are underperforming, but also managing slight gains. Wall Street closed mixed…
Traders have different ways of identifying trends and trend direction. Some traders identify trend purely based on the trajectory of price action. Some use moving averages. Others use different technical indicators. Pure price action traders are very unique in identifying trends because most price action traders rely solely on a naked chart. This lack of structure and concrete rules make identifying trends and trend direction very difficult for new aspiring price action traders. However, there are ways to objectively identify trend direction based on price action. First, let us look into how price action traders identify trend direction. Price action…
Introduction to the Buy Sell Volume Indicator Volume is one of the most important information that seasoned traders take note of. This is because trade signals with high volume tend to indicate that the trade signal has strong momentum. The Buy Sell Volume Indicator is a trading tool which is based on the concept of using volume to identify strong momentum. What is the Buy Sell Volume Indicator? The Buy Sell Volume Indicator is a momentum technical indicator which uses volume as its basis for identifying momentum direction. This indicator is an oscillator type of indicator which plots histogram bars.…
Most forex traders make money whenever the market starts to trend. This is because trending markets implies strong volatility moving generally in one direction. Traders make money whenever there is sufficient market movement or volatility. However, price would have to move in the direction predicted by the trader instead of moving back and forth within a short range. Trading in the direction of the trend allows for huge profits because it provides both aspects of volatility and trade direction. Trend reversal strategies are probably some of the highest yielding trading strategies. Trend reversals strategies implies that traders are able to…